The future of Oxford’s community centres hangs in the balance amid a string of Town Hall cost cuts, it was revealed last night.

Worries were sparked after it emerged the city council was axing grants which cover business rates for 22 of its community centres.

It has been suggested the move could mean the closure of centres because community associations — which are mainly staffed by volunteers — may no longer be able to afford the running costs.

Bill Baker, chairman of Oxford Federation of Community Associations, said: “We are very unhappy.

“For some of the smaller community centres, which have very limited sources of income, it could be the straw that breaks the camel’s back.”

But last night the council claimed it had no choice but to make the estimated £25,000 saving.

Oxford’s community associations are each responsible for the room hire and administration of individual centres across the city.

The centres, which are mainly city council owned, provide a meeting place for groups including youth clubs, pensioners’ activity classes and people suffering with mental health issues.

Any money raised by the associations is put back into paying utility bills or the salaries of a small number of staff, including cleaners and centre managers.

Each community association has to pay business rates based on the rateable value of its building — in other words the amount the building can be rented for by the public.

But, because they are registered charities, community associations are eligible for an 80 per cent discount, and for the last two years the city council has paid the centres a grant equivalent to the remaining 20 per cent of the business rates.

Bill Buckingham, president and secretary of Rose Hill Community Association, said the extra charges would cost his association an extra £50 a week.

He said: “I know they are hard pushed but they ought to be paying it. It really will hit us.”

A spokesman for East Oxford Community Association said the business rates would cost it about £1,750 – roughly three per cent of the association’s annual budget of £58,000.

The association’s treasurer, Sarah Lasenby, said: “This is a disgraceful abdication of responsibility by the city council.

“People are very angry.

“We will have to watch even more carefully the way the money flows.”

Antonia Bance, the city council’s lead member for social inclusion, admitted it was her decision not to cover the cost of the business rates in the next financial year.

She paid tribute to the “amazing work” of the community associations, but said: “The problem is a really basic one. We have had to make £5.6m of savings out of a £28m budget.

“We just can’t afford it.”

Mr Baker, who is also chairman of Donnington Community Centre and a former Lord Mayor of Oxford, said there were three possible courses of action for the associations: pay the business rates, refuse to pay the rates and face the consequences, or hand the keys back to the city council.

Mr Baker said about 10 groups used the Donnington centre on a weekly basis.

ghamilton@oxfordmail.co.uk